Hello Ten-Year One-Handle, Hello Gold

-edited

Gold blasted $48 higher today and the 10-year Treasury yield briefly fell below 2.0% with Mideast tensions rising.

Mideast tensions are heating up as Iran Shoots Down US Drone: "You'll Soon Find Out" if US Plans Strike Says Trump.

I expect cooler tempers will prevail but who knows?

US Treasury Yields

Gold Above Major Resistance

Finally!

Gold convincingly blasted above major resistance in place for three years. Gold needed to top $1377.50 and did. It closed at $1396.90.

A test of the $1340 to $1370 area from above is now likely. If it happens, buy the dip.

Mike "Mish" Shedlock

Comments (13)
No. 1-8
Sechel
Sechel

i just bought a 10 year GO muni yesterday to maintain a ladder. I was complaining about the low rate i locked in yesterday. By today that rate looked good. A year ago that muni would have yielded 80 bps more. But the muni market is so thini these days the competitive deals i was looking at kept going to firms i wasn't associated with.

lol
lol

Soaring inflation from massive money printing will cause the dollar or the federal govt to near collapse by years end,it's quite possible the dollar and the Trump regime collapses SIMULTANEOULY....either way,gold/silver lovin it!

bradw2k
bradw2k

Gold up, treasuries up, stocks up, oil up, Bitcoin up ... this is a freak show! And the dollar is the freak.

Jojo
Jojo

In the story below, it seems like the USA economy is chugging along just fine. I can't see why anyone should be crying for a rate cut. Who's fooling who? Sounds like someone is getting snookered into buying gold and will ose their pants when it turns around.

The economy is booming. But are Americans' finances healthier because of it? June 20, 2019

If you had to grade the U.S. economy today, it would probably get straight As.

The country is a month short of the longest economic expansion ever. Unemployment is at 50-year lows. Stocks notched the longest bull market last year and are again nearing fresh highs. And U.S. home values hit a record high in the first quarter.

JohnSmithKalk
JohnSmithKalk

In the commodities sector, I guess investing in gold stocks will surely be profitable rather than other commodities. What say? I keep myself updated by reading various stock market news and through discussions as I feel these are the best ways to know current stock market trends.

KidHorn
KidHorn

I've never seen a one day move in gold like yesterday. My gut feeling is it will gradually decline over the next few days, but will remain in a long term gradual uptrend.

RobinBanks
RobinBanks

Interesting that its stayed above $1400 even with an expected early morning London takedown. Perhaps physical demand could be wagging the dog with Chinese and Russian buying.

truthseeker
truthseeker

Mish your call for gold several several months ago then again just before it took off due to the collapse of interest rates, I supported you despite some very bearish COT reports that , here we go again with a bearish COT report again today, i’d like to know where the yield of the 10 year note was back in 2011 when gold was making its all time high around I think was above 1800.